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    Chinese Electricity Suppliers Are Steadily Entering The New Retail Era. The Pure Electricity Supplier Mode Is "Not Working".

    2017/6/29 21:55:00 36

    China'S Electricity SupplierNew Retail EraE-Commerce Mode

    Amazon recently launched the "first try, buy" service, called "Prime Wardrobe" (Prime wardrobe), which is considered to be the Whole Foods Markets Inc of high-end grocery supermarket after it announced the purchase of $13 billion 700 million.

    After that, another big news came from the e-commerce giant to the physical retail industry.

    Compared with Amazon's scramble from online to offline, many foreign fast fashion apparel brands such as Gap and Zara have entered Tmall platform early in China.

    On the one hand, the continuous development of e-commerce enables retailers to integrate topics from online and offline channels into the discussion of "all channels" and "new retail". On the other hand, the change of digital consumer behavior patterns and user portraits also create new models, prompting retailers to change channels, products and services.

    McKinsey recently released 2017 China digital consumer research, interviewed and analyzed more than 5900 Chinese consumers, and pointed out five new trends of concern about consumer behavior and preferences, including consumer expectations for "scenario triggered shopping", and social media centric consumer interaction.

    The rise of the "net red economy" has made retailers more excited and confused.

    In recent years, the more obvious is the field of cosmetics and luxury goods. It seems that a new business model has been explored from celebrity endorsements, KOL (key opinion leaders) and fashion bloggers.

    "Digitalization has changed consumer expectations for research, purchase and use of commodities."

    Wang Wei, partner of McKinsey Global senior director, said: "China's electricity supplier is steadily entering the" new retail era ". Enterprises must jump out of the pure electricity supplier channel thinking.

    China has become the largest electricity supplier market in the world, but the pure e-commerce mode is "not working".

    According to statistics, the scale of China's online retailing is approximately the sum of the six major electricity supplier markets closely followed by the United States, Britain, Japan, Germany, Korea and France.

    But after 6 years of rapid growth, the total volume of e-commerce in China has slowed down from 74% in 2011 to 19% in 2017.

    One reason is that the pure online retail platform is approaching the top and the competition is becoming increasingly fierce.

    There are also indications that consumers are not moving from offline to online in some categories.

    The characteristics and trends of digital consumers' behavior patterns are more important for retailers to choose the next step.

    According to the McKinsey report, there are five key trends in the evolution of China's digital consumer behavior: online and offline integration of full channel shopping has become the mainstream consumption mode; consumers expect anytime and anywhere to "trigger shopping" with sex; embedded B2C electricity providers, social media as the center to stimulate consumer interaction; the demand for products beyond standard products and regular services is increasing; data driven in-depth personalization.

    "The whole channel has become a new normal, and the offline channel is still an important node in customer experience and sales pformation."

    Wang Wei believes that physical retail stores are essential for full channel experience.

    In addition, whether it is natural to trigger various scenes of life into "retail scenes" has become a new opportunity in the new retail era.

    Social media has stimulated many digital behaviors, including e-commerce.

    According to McKinsey, respondents who use social media regularly account for 85% of digital consumers.

    However, in view of the social business itself, brand B2C naturally has social elements, but there is still a gap between mainstream e-commerce platforms such as product mix, logistics and services.

    In addition, customization and personalized services are becoming more and more important. Sometimes they are services that meet specific service requirements, such as short term rental products. This is particularly evident in clothing categories.

    However, in reality, the so-called "personalized push" is often a "spam bombing".

    In fact, there are few company's business or operation mode to meet the needs of such customization or short-term trial. However, in addition to the Amazon, there are also water users, such as Nike's NIKEiD exclusive customization and the strong pformation of China Qingdao custom garment company red collar.

    "What consumers want to see in the future is more and more clear, but what brands do is not clear."

    "Because it breaks the way of production and marketing in the past, we need to break the internal operation system," he said in an interview with the twenty-first Century economic report.

    Now most brands have tried in these areas, but there are no successful solutions.

    Despite the fact that net red economy is not working well, digital retailing still has considerable potential to tap.

    According to the above report, to meet the needs of Chinese consumers in the era of digital retailing, enterprises need to consider three points: redefining channels, shaping convenient and personalized shopping processes, redefining lifestyles, improving consumer participation, and redefining products and services.

    From the perspective of channels, the rise of "net red economy" is one of the hot topics widely discussed in China's electricity supplier market.

    The most beneficial categories include cosmetics, luxury goods and maternal and infant.

    At the beginning of this year, the Paris bank luxury department selected the top ten Chinese fashion bloggers, including gogoboi, Dipsy Dixie, ribek, VintageMuse and pomegranate Po, and was considered to be an important channel to influence brand marketing.

    Correspondingly, brands are investing more and more in e-commerce and digital marketing. Their business increments are reflected in the delivery and dissemination of products on different platforms, such as the shift from traditional media advertising to

    New media

    TV drama implantation, recommendation of "social daring" and so on.

    In its 20th anniversary celebration, L'OREAL CEO China platinum Han said that from L'OREAL's live broadcast in the Cannes Film Festival and social media activities, to the innovation of AR and VR across the border with BAT, "not only increased the channels of communication with consumers, but also at the same time

    E-commerce platform

    Build a bridge.

    But recently Estee Lauder announced the closure of its first product line The Est e Edit, which was set up for the millennial generation. Last year, the sub line brand invited "net red" Kendall Jenner and Korean fashion blogger Irene Kim as spokesmen, but the market performance was far less than expected.

    For the conversion rate of "net red", according to the explanation, there are three main factors for consumers to buy the products recommended by net red: one is to love the house and the other; the two is to trust the neutral third party, because it is more experienced; three is the sense of identity, they represent the direction that consumers want to work hard.

    "Relatively speaking, identity is more important," Wang Wei thought.

    Internet celebrity

    There is a limit to attracting consumers to buy things alone.

    With the in-depth analysis of big data, this will be more beneficial for brand players to track consumers' targeted placement and pformation.

    "Net red can not reach a large number of consumers, but in their positioning and can reach the consumers, their impact will not be much worse than other channels."

    For more information, please pay attention to the world clothing shoes and hats and Internet cafes.


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